Ringgit opens firmer ahead of OPR decision
Bank Muamalat’s chief economist expects a 25-basis-point increase in the policy rate and sees scope for further ringgit gains.
The ringgit gained against the US dollar at the opening on Nov 5, trading at 4.0585/0660 at 8 am compared with the previous close of 4.0610/0660, ahead of Bank Negara Malaysia’s (BNM) interest rate decision.
BNM’s Monetary Policy Committee is due to meet for the sixth and final time in 2026. Bank Muamalat Malaysia Bhd chief economist Dr Mohd Afzanizam Abdul Rashid told Bernama he expected the Overnight Policy Rate (OPR) to rise by 25 basis points. He said the move could normalise monetary policy as economic growth continued to surpass its target this year.
Mohd Afzanizam also attributed the currency’s gains to stronger risk appetite after the United States midterm elections. He pointed to the S&P 500’s 1.58 per cent rise to 7,688.62 points and a 0.33 per cent decline in the US Dollar Index (DXY) to 101.528 points. He expects further ringgit strength, with the dollar pair potentially testing RM4.05.
The ringgit also advanced against the euro, reaching 4.5601/5686 versus 4.5723/5779 at the previous close. Against the British pound, it traded at 5.4696/4797, compared with 5.4783/4850.
Performance against ASEAN currencies was mixed. The ringgit rose against the Singapore dollar to 3.1734/1798 from 3.1771/1813, but weakened against the Thai baht to 12.0746/1037 from 12.0673/0868.
